Woodside holds on to stake in Senegal oil field as FAR challenge fails

(Reuters) – ConocoPhillips’ (COP.N) sale of a stake in a $4.2 billion Senegal oil and gas project to Woodside Petroleum (WPL.AX) has been cleared by an international tribunal, resolving a long-running challenge by Australian partner FAR Ltd (FAR.AX).

FILE PHOTO: The shadow of a man is cast onto a poster displaying the logo for Woodside Petroleum, Australia’s top independent oil and gas company, at a briefing for investors in Sydney, Australia, May 23, 2018. REUTERS/David Gray/File Photo

Woodside and FAR said on Friday an International Chamber of Commerce panel had ruled that FAR did not have a pre-emptive right to match the offer for the 35% stake in the Sangomar project that ConocoPhillips sold to Woodside in 2016 for just $350 million.

FAR said it was reviewing the arbitration award. It holds a separate 15% stake in the Sangomar project, which also counts Cairn Energy Plc (CNE.L) as a stakeholder.

FAR’s shares fell as much as 9% to 3.1 cents, their lowest level since the middle of 2013, on the news that it would miss out on the chance to potentially raise its stake in Sangomar for a comparatively low price, or win compensation.

At that level the shares were also well below the 4.25 cents apiece that investors paid in a recent issue of new stock by the company.

The resolution of the case comes just as Woodside and its partners have begun development of the Sangomar project, following final investment decisions in January, with first production expected in 2023.

FAR, which discovered the Sangomar field in the world’s largest

Keep reading this article on Reuters Business.

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